The Republic of Cyprus for a long time has been a centre of sailing and maritime trading activities. In 2021, Cyprus offers one of the world's most attractive yacht registration procedures in Europe to provide the majority of benefits from Cyprus global shipping, maritime environment and Cyprus flag to the individual, willing to register yacht in Cyprus.

General information on shipping & maritime industry in Cyprus

Based on its historical facts and ideal geographical position connecting Europe and Middle East, Cyprus has always been used as a maritime trading centre by the Egyptians, Greeks, French, Romans, and the British.

Since 1960's Cyprus modernized the economy, making the Republic of Cyprus an international center for commerce and business. Based on the expanding economical benefits, the significance of maritime business activities in Cyprus, the island began to attract enterpreneurs and big shipping companies, establishing profitable and comprehensible policies for those, who select yacht registration in Cyprus.

Cyprus tax schemes and various policy benefits attract foreign shipowners and shipping companies to choose Cyprus as a flag state and also a principal place of business for the shipping company.

  • Cyprus Registry - the 3rd largest fleet in the European Union and the 11th largest merchant fleet worldwide, accounting for more than 2000 vessels and 21 million gross tons.
  • The city of Limassol, the shipping and maritime business center of Cyprus is the place for the largest third-party ship management center in the EU. Additionally, more than 90% of the Cyprus shipping companies are established in Limassol.
  • Cyprus flag manages more than 20 percent of the world’s third-party ship management fleet.

 

Yacht registration in Cyprus: Basics

The registrar of Cyprus ships generally provides three different types of shipping vessels classification and registration possibilities:

1. Provisional Registration:

Applies to the registration of ships for 6 months. It can be renewed one time for an additional 3 months.

2. Permanent Registration:

Permanent registration is the most common registration of a ship or yacht option in Cyprus. If a provisionally registered ship requires permanent registration, it must be done within 6 months, or 9 months in case the extension is applied.

3. Parallel Registration:

This type includes two categories, parallel registration applies either to: 

  • foreign vessels of a Cyprus shipping company under bareboat charter to gain the Cyprus flag most often for 2 years (parallel-in)

or,

  • owners of Cyprus vessels to choose to bareboat charter the ships to a foreign company/person for parallel registration in a foreign register for the length of a charter party (parallel-out).

In regard to yacht registration in cyprus, the majority of yacht owners or yacht-owning companies choose to apply permanent registration for their vessel through first establishing provisional registration. 

Yacht registration in Cyprus: Procedure

To register yacht in Cyprus, an individual or a company shall comply with the procedure of the registration.

Firstly, it is necessary to consult and appoint an authorised representative in Cyprus for yacht registration to determine the application requirements.

Secondly, there shall be a payment of all fees and taxes before the registration of a ship. Provisional registration may be completed abroad by approved consular officers of Cyprus in accordance with the instructions of the Republic of Cyprus.

Thirdly, all documentation for the application is submitted for approval.

Ownership Requirements for yacht registration in Cyprus

To register yacht in Cyprus, two circumstances shall allow for the registration of the vessel based on the ownership criteria requirement. 

  • First option that will allow to register yacht in Cyprus: 50% of the shares are owned by a Cypriot citizen, other EU member state, or European Economic Area.

or,

  • Second option to register yacht in Cyprus: A vessel may also be accepted if the 100% of the shares are owned by one or more companies that are established and operating in accordance with the laws of Cyprus, EU member state, or EEA member state. If the vessel is outside Cyprus or the member states but is controlled by a Cypriot citizen or other member state citizen, the application may also be accepted.

For yacht registration in Cyprus, we advise firstly to register Cyprus company, to ensure meeting the ownership criteria and procedural requirements.

To know more about meeting the ownership criteria to register the vessel in Cyprus, please contact our lawyers in Cyprus: info@eulawfirm.eu

Requirements of the documentation for yacht registration in Cyprus

Documents for yacht registration in Cyprus (in most of the cases required in English) generally include:

  1. The Declaration of Ownership, including corporate certificates if owned by a company or identification papers if owned by a natural person.
  2. Company Memorandum.
  3. Articles of Association.
  4. Builder’s Certificate or Bill of Sales.
  5. Other documents depending on circumstances of the application cases.

Please be informed of the cases when yacht registration in Cyprus may be denied:

Before submission of the documents for yacht registration in Cyprus, it is necessary to check if the vessel is not banned on Port State Control grounds of any member state in which Cyprus is included in the Memoranda of Understanding at the time of application. In case of the ban imposed, the Cyprus Registrar will deny an application.

In case the ship has been detained on at least 3 occasions during 2 years before the application on Port State Control groups by the US Coast Guard or States of Memoranda of Understanding. Ships constructed or purported to use exclusively for inland navigation will not be accepted as well.

All applications of yacht registration in Cyprus are considered by the Registrar of Cyprus Ships under the Office of the Shipping Deputy Ministry, located in Limassol.

Yacht registration in Cyprus: Flag benefits

The registration of yacht in Cyprus under the Cyprus flag would ensure many advantages for the operation and management of vessels.

Some of the tax benefits if yacht is registered in Cyprus under the Cyprus flag:

  • No tax on the operational or management profits on Cyprus-registered ships;
  • No tax on income or dividends received from a ship management company;
  • No capital gains tax on the sale, transfer, or shares of a ship-owning company;
  • No estate duty imposed on inheritance;
  • No income tax imposed on the wages of the officers or crews;
  • Low tonnage tax based on gross tonnage;
  • No stamp duties for ship mortgage deeds or security documentation;
  • Benefits from the double tax treaties Cyprus has concluded with other countries.

Other benefits if yacht is registered in Cyprus:

  • Low-cost European registration of a ship;
  • Low operating cost for Cyprus-owned companies;
  • European Union Flag and access to the EEA for trading & pleasure travel;
  • Environmental awareness;
  • More than 23 countries have bilateral agreements with Cyprus for favored treatment in worldwide ports;
  • Maritime offices around the world;
  • Highly skilled professionals and maritime infrastructure in Cyprus;
  • White-listed reputable flag recognized globally.

The list of benefits include the simple rewarding taxation policies and the registration process both for yachts and yacht-owning companies. It is important to note that Cyprus offers one of the lowest cost to register yacht in Europe.

Cyprus offers a network of local inspectors for yachts in significant ports all over the globe.

You can register a yacht with a Cyprus flag without the vessel being in the country at the time of registration. 

Why register a yacht in Cyprus?

There are many reasons why choose Cyprus over other global jurisdictions for yacht or ship registration. 

Cyprus is one of the few approved European Tonnage Tax systems in the world.

Cyprus is a reputable jurisdiction worldwide, having progressive security requirements. Having a yacht with Cyprus Flag would ensure the minimum of security and scrutiny problems.

Cyprus has the approval of not only the European Commission but also the OECD for its maritime environment, making the vessels under Cyprus flag one of the most reputable in the world.

Yacht registration in Cyprus is one of the cheapest in the world - Cyprus has low registration costs and attractive service prices for ship management companies.

The advantages of the tax regime also provide for yacht owners to enjoy the VAT Scheme, that would allow to reduce the VAT.

REGISTER YACHT IN CYPRUS TODAY:

Contact EU LAW FIRM lawyers in Cyprus, to ensure the yacht registration quality in Cyprus.

E-mail: info@eulawfirm.eu

Telephone: +371 26742086 (Available on WhatsApp/Telegram/Viber/IMO)

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